Bac Lieu wind power developers protest request to cut production

Wind power plant investors in Bac Lieu province are protesting the difficulties they have to endure because state utility Vietnam Electricity (EVN) has asked them to cut production.

This is a conundrum that needs to be solved, they say, noting that the production cut request comes even as EVN, the only buyer in the Vietnamese market, still has to import electricity to ensure sufficient power supply.

Nguyen Van Dung, deputy general director of Hacom Bac Lieu Energy JSC, investor of the Hoa Binh 5 wind power project, said the plant’s 26 turbines with a combined capacity of 80 megawatts in the first phase were connected for commercial power generation before October 31, 2021 - the deadline to benefit from the incentivised feed-in tariff (FiT) scheme.

Under the government's decision, the 20-year preferential FiT is 8.35-9.8 U.S. cents per kWh for wind power projects that became operational by November 1, 2021.

The Hacom Bac Lieu project has a total investment of over VND3.7 trillion ($153.3 million) with a designed power generation capacity of up to 280 million kWh per year. If the plant runs at full capacity, the company will contribute VND80 billion ($3.3 million) to the local budget per year, according to its estimate.

However, the plant has so far operated at about 70% of its capacity as requested by the EVN’s National Load Dispatch Center.

“With such a reduction in capacity, the company’s average monthly revenue is slashed by about VND8 billion ($330,000). This is an unforeseen difficulty facing us in the project investment process,” Dung said.

Provincial chairman Pham Van Thieu said that Bac Lieu was a leading locality in the Mekong Delta in wind power development. Since the first wind power plant (Bac Lieu) was completed in 2016, the province has seen seven more similar projects put into commercial operation, making a great contribution to the country's national energy supply.

However, not only Hacom Bac Lieu Energy JSC, many other wind power developers have also reported EVN’s request for production cuts, he said.

“Why don’t we find ways to effectively use renewable energy sources as we still lack electricity and have to import power at high prices? This must be seen as a limitation in management, making it difficult for businesses,” Thieu noted.

He asked National Assembly delegates representing Bac Lieu to report voters' concerns over this issue to the legislature at its upcoming session, slated for next week. Thieu cited EVN data showing that up to 1.68 billion kWh of wind and solar power was not utilized in 2021, equivalent to about 7-9% of the actual capacity of these power sources.

“The untapped power output of renewable energy sources is increasing as more and more projects are completed. This is a huge waste in the context that thermal power sources are in short supply, with prices climbing day by day,” he added.

According to EVN, the total capacity of operational wind and solar projects in Vietnam - 16,545 MW of ground and roof solar power, and 4,126 MW of wind power - accounts for nearly 27% of the total installed capacity.